As CEOs watch the continued economic uncertainty around the globe, many remain hesitant to invest their companies’ cash in building factories, buying new equipment or hiring more workers. So, more of them have been turning to another way to deploy idle financial assets: buying back the company’s own stock.
CEOs and boards of directors are feeling the pressures of increased stakeholder activism and scrutiny. When asked in the RHR International 2013 CEO Snapshot Survey about the current biggest threat to their tenure, 22 percent of CEOs cited “failure to perform to stakeholder expectations,” compared to just 12 percent in January 2012. In addition, more than half (57%) say that they will be driving a change in their company’s strategy this year.
A serial entrepreneur and angel investor tells how consistent communication and strong relationships with investors will make it easier for executives to raise capital and leverage investor resources for their company’s growth.
In 2012, labor unions and associated organizers under the “Occupy” umbrella have been especially active in challenging executives’ pay, according to a recent report by James R. Copland, director of the Manhattan Institute’s Center for Legal Policy. The Institute’s report is featured in ProxyMonitor.org, a publicly available resource containing searchable and sortable information on public company shareholder proposals.
Achieving the best valuation is not dissimilar to running the business. One needs to build the right team and analyze the objectives and various exit strategies that are open. Here’s how one expert frames the process.
Shareholder value, the CEO mantra of the 1990s, is like Victorian sex, more discussed than consummated. CE gathered a number of heavy breathers who argue that there are many things CEOs can do (legally) to create the valuation they think is merited.